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UltraTech using Chinese yuan to pay for Russian coal

2022-07-05

UltraTech Cement, India's biggest cement producer, is using Chinese yuan to pay for a cargo of Russian coal, according to a Reuters report. The news agency says it has reviewed a document that shows UltraTech is bringing in 157,000 tonnes of coal from Russian producer SUEK, and an invoice values the cargo at $25.81 million.

Both UltraTech and SUEK have refused to comment on the report, which says other companies have also placed orders for Russian coal using yuan payments.

The increasing use of the yuan to settle payments could help insulate Russia from the effects of Western sanctions over its invasion of Ukraine and bolster Beijing's push to further internationalise its currency.

India has maintained trade ties with Russia for commodities such as oil and coal despite the sanctions. It has longstanding political and security ties with Russia and has refrained from condemning the attack in Ukraine.

It was not clear which bank opened a letter of credit for UltraTech and how the transaction with SUEK was executed. The ship that brought the coal is currently at anchor near of Kandla, according to ship-tracking data on Refinitiv Eikon.

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